This error message indicates that your processor does not support the HAV feature.

The update KB977206 removes the prerequisites required to run Windows Virtual PC and XP mode, that is, a processor which supports hardware assisted virtualization (HAV) which is also enabled in the BIOS.

Download KBKB977206 for 32-bit and 64-bit Windows 7. Be aware that to download Windows Genuine Advantage validation is required. Alternatively you can use the direct download links below.